GBP/USD Price Analysis: Sees more upside above 1.2400
- The Cable is displaying a balanced auction ahead of the UK Retail Sales data.
- Pound Sterling has resumed its upside journey after testing the breakout zone of the Rising Channel pattern.
- A 60.00-80.00 range oscillation by the RSI (14) indicates that the upside momentum is active.
The GBP/USD pair is displaying back-and-forth moves below the round-level resistance of 1.2400 in the Asian session. The Cable has turned sideways as investors are awaiting the release of the United Kingdom Retail Sales data for fresh impetus. An improvement is expected from the economic data that their former figures and the reason behind improvement could be rising wages due to the tight labor market.
The US Dollar Index (DXY) is attempting to come out of the woods, has traded in a narrow range in Asia, and is trying to break north. Meanwhile, the S&P500 futures have not surrendered their early gains yet, portraying minor optimism in the overall bearish market mood.
GBP/USD resumed its upside journey after testing the strength of the breakout of the Rising Channel chart pattern above 1.2300. It seems fine considering the asset in a bullish trajectory as the chart formation seems solid for the Pound Sterling.
The asset recovered firmly after testing the 50-period Exponential Moving Average (EMA) at 1.2317. The 20-EMA at 1.2374 is sloping north, which indicates that the short-term trend is bullish.
Meanwhile, the Relative Strength Index (RSI) (14) is oscillating in a bullish range of 60.00-80.00, which indicates that the bullish momentum has already been triggered.
Should the Cable break above the round-level resistance of 1.2400 decisively, Pound Sterling bulls will drive the asset towards the psychological resistance of 1.2500 and June 7 high around 1.2600.
The Cable will display a sheer downside if it drops below Monday’s low at 1.2171 as it will drag the major toward January 11 low at 1.2100 followed by the psychological support at 1.2000.
GBP/USD hourly chart
